OEB-approved five-year agreement to benefit customers and company
CHATHAM, ON, Oct. 7, 2013 /CNW/ - Today, the Ontario Energy Board (OEB)
approved a new five-year incentive regulation framework for Union Gas,
which the company will use to determine the rates it will charge
customers for natural gas delivery services beginning January 1, 2014.
The framework parameters were determined through a settlement process
and a negotiated agreement with key stakeholders who represent the
interest of the company's customers and regularly participate in rate
Through the new framework, delivery rates are determined at the
beginning of each year using a pre-set formula that allows for an
annual inflation increase based on Gross Domestic Product (GDP), less a
productivity expectation for the company, resulting in an annual change
of less than half40 percent of inflation.
The framework includes the pass-through of certain costs, including
those associated with major capital investments, along with a number of
other regulatory and financial features. The structure also includes
an earnings sharing mechanism through which the company will share
earnings with its customers beyond certain thresholds.
"We are very pleased to have arrived at this negotiated settlement with
our stakeholders and to have received approval from our regulator,"
said Steve Baker, president of Union Gas. "This multi-year agreement
will allow the company to continue to grow and invest in our Ontario
natural gas infrastructure while offering rate stability and lower than
inflation rate changes to our customers."
About Union Gas
Union Gas Limited is a major Canadian natural gas storage, transmission
and distribution company based in Ontario with 100 years of experience
and service to customers. The distribution business serves about 1.4
million residential, commercial and industrial customers in more than
400 communities across northern, southwestern and eastern Ontario. One
of Canada's Top 100 Employers for 2013, Union Gas is a Spectra Energy
(NYSE: SE) company with assets of $5.8 billion and approximately 2,200
employees. For more information, visit uniongas.com or find us on Twitter: twitter.com/uniongas, Facebook: facebook.com/uniongas and YouTube: youtube.com/user/uniongas.
About Spectra Energy
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North
America's premier pipeline and midstream companies. Based in Houston,
Texas, the company's operations in the United States and Canada include
more than 22,000 miles of natural gas, natural gas liquids, and crude
oil pipelines, approximately 305 billion cubic feet (Bcf) of natural
gas storage, as well as natural gas gathering and processing, and local
distribution operations. The company also has a 50 percent ownership in
DCP Midstream, the largest producer of natural gas liquids and the
largest natural gas processor in the United States. Spectra Energy has
served North American customers and communities for more than a
century. The company's longstanding values are recognized through its
inclusion in the Dow Jones Sustainability World and North America
Indexes and the CDP Global 500 and S&P 500 Climate Disclosure and
Performance Leadership Indexes. For more information, visit www.spectraenergy.com.
SOURCE: Union Gas Limited
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